Eurofins Scientific launches tender offers to buy three series of bonds

By Rebecca Melvin

Concord, N.H., May 10 – Eurofins Scientific has launched tender offers to repurchase its €500 million 3 3/8% bonds due Jan. 30, 2023 with €353,609,000 outstanding, its €650 million outstanding 2 1/8% bonds due July 25, 2024 and €600 million outstanding 3¾% bonds due July 17, 2026, according to a company release.

The offers include no priority order and are subject to the successful issuance of bonds under a planned benchmark sized offering between €500 million and €750 million (expected rating: //BBB-).

Any of the 2023 bonds validly tendered will be accepted for repurchase. After the completion of the tender offer and issuance of new bonds, the remaining 2023 bonds will be redeemed either via a clean-up call or via the make-whole clause of the indenture.

The repurchases of the 2024 bonds and 2026 bonds will be capped at an amount announced after the successful issuance of the new bonds.

The tender offer results are expected to be announced along with pricing on May 19.

The purchase price for the 2023 bonds will be based on the 1.5% German bund due September 2022 and a spread of 50 basis points. The price for the 2024 bonds will be calculated using a purchase yield of negative 10 bps. The price for the 2026 bonds will be based on the 2026 interpolated mid-swap rate and a spread of 37 bps.

After the transactions, which are intended to proactively manage the refinancing of Eurofins’ outstanding bonds, the company will have no major senior debt instalment prior to 2024.

The international group of laboratories is based in Luxembourg.

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